Signs of Changing Paradigms:

SONARA Cedes ‘Huge’ Concession to ‘Anglophone’ Company

Fakoship LTD is the winner of the international bid for “Mooring and Towage” operations at Sonara’s Cape Limbo Terminal. The leasing convention was signed Thursday 28 June 2018, at Sonara Limbe, between the National Ports Authority, PAD and the Buea-based Fako Transport and Shipping Company, FAKOSHIP LTD. Authorities noted that it is the first time an indigenous company ever hit it that big at Sonara, since the location in Limbe of Cameroon’s sole oil refinery way back in the mid 1970s.

By Ticha Melanis in Limbe

GM of PAD Cyrus Ngo’o and Founder/CEO of Fakoship, Charlesenyoli, exchange

 books after signing convention. SONARA GM; Talba Malla Ibrahim looks on

The GMs of Sonara, PAD and the Founder/CEO of Fakoship LTD were all smiles at the Sonara conference hall on Thursday 28 June 2018, as they penned their signatures on the ocuments of the concession agreement that now makes Fakoship the sole company in charge of Mooring and Towage activities at Sonara’s Cape Limbo Terminal.

            According to the GM of SONARA, Ibrahim Talba Malla, the Mooring and Towage of SONARA'sCape Limbo oil terminal is not only vital but indispensible for the company’s day-to-day operations.

            He said that for Sonara to be competitive as it should be Mooring and Towage of the terminal are a must this, because they make for the easy access of the big vessels that bring in the company's raw material - Crude oil, and take out its finished products- refined petroleum and gas.

            Talba noted that SONARA will make considerable financial gains from its mooring and towage activities especially considering the attractive tariff grid approved by the National Port Authority. He the implementation of the new tariff grid for mooring and towage operations would cause operations cost to drop to about FCFA 4.8 billion down from FCFA 6.8 billion in 2017. This corresponds to a net reduction of 30% compared to the practical cost during the transition period.

            "The concession agreement will render our company more competitive and this will enable us to work harder towards meeting the government’s objective of improved economic performance and growth. It will equally provide the needed stability and better adaptability of our industrial activities especially given that the duration of the concession agreement has been raised to ten years with the possibility of amending it every three years," said the GM.

            Mr. Talba Malla expressed the hope that the agreement will guarantee Fakoship a smooth conduct of operations, after it has proven its knowhow and expertise in the domain since carrying out the same activity in the said terminal for several years.

           

GMs of PAD and SONARA pose with Founder/CEO of Fakoship

Also speaking at the ‘historic’ ceremony, the Director General of PAD, Cyrus NGO'O, congratulated FAKOSHIP Ltd for winning the bid against two international companies competed in the bidding process. He acknowledged the professionalism and expertise demonstrated by Fakoship in all the phases of the process leading up to the signing of the concession agreement.

            Cyrus Ngo’o explained that the process began in 2013 and was followed by a call for bids in 2016. It was marked by various events one of which being the laying down of the procedure for awarding concession agreements.

            He said with the enactment of the 12 July 2017 law amending the status of public companies in the country, the PAD board of directors through a resolution of 22 December 2017, produced a more suitable legal framework for awarding concessions of port services.

            Noting that it was the first time that a concessioner’s share capital is wholly owned by indigenes, Cyrus Ngo’o remarked that the outcome of the bid demonstrates succinctly that National companies can compete favourably with international companies in concession tender procedures.

            He expressed the hope that this will encourage other national companies to belief in themselves in the execution of major national projects which arein line with the country’s plan for emergence by 2035. He said the concession will create 60 direct new jobs with 10 being executive positions.

            He urged Fakoship to show roof of improved dynamism in the execution of the agreement, reminding them that the signature of the contractual deeds is just the beginning of a journey and hat PAD is going to pay close attention to compliance by the concessioner to ensure performance and results.

            The Deputy Managing Director of Fakoship, Roseline Mojoko Menyoli, speaking for the octogenarian Founder and Managing Director, Dr Charles Namme Menyoli, expressed joy for the eventual signing of the 10-year concession deal which she says took them seven good years to obtain. She said in the last 23 years of the over 40 years of its existence, Fakoship has built an unbeatable reputation and record of practical experience in providing world class and accident-free towing and mooring services to SONARA and the Cameroon naval and industrial shipyard company.

            To Roseline Menyoli, Fakoship’s tested and proven reliability and efficiency certainly influenced PAD and Sonara to select her for the strategic job.

            She said they are proud to have been the first local company to have won such concession against international bidders and that they are signing the concession with an extensive portfolio of committed personnel- KOTUG International BV, state of the art tug boats and other nautical equipments.

            She further explained that their vision is to deliver a 24/7 highest quality towing and mooring services to SONARA and the Limbe shipyard.

            The introductory memo of the concession agreement has 69 clauses and terms of reference comprising 90 articles. It is structured around the following elements: the purpose of and the services to be rendered in the concession, the modalities for entry into force, the obligations, rights and responsibilities of the parties, the financial and investment system, sanctions and penalties amongst others.

            The GM of SONARA thanked everyone that played a role in the operations which paved the way for the signing of the agreement. He said it has been five years since Sonara launched efforts to get better mooring and towage services at the Cape Limbo oil terminal.